Trump Proposes $100 Billion in New Tariffs In a Potentially Serious Escalation of the Trade War With China

April 6, 2018, 3:17 AM UTC

President Trump has proposed an additional $100 billion in new tariffs on Chinese goods in a move that could lead to an all-out trade war.

Bloomberg reports that Trump’s proposal comes a day after Beijing’s plan to tax $50 billion in American products, which in turn follows a previous U.S. measure to tax $50 billion on Chinese imports.

“In light of China’s unfair retaliation, I have instructed the USTR to consider whether $100 billion of additional tariffs would be appropriate under section 301 and, if so, to identify the products upon which to impose such tariffs,” Trump said in a statement issued by the White House.

S&P 500 Index futures fell as much as 1.6 percent on Thursday.

For more on the U.S.-China trade war, see Fortune’s video:

A White House official later clarified that the $100 billion figure refers to the value of imports, not the total amount of tax on the products, Bloomberg reports.

U.S. Trade Representative Robert Lighthizer said no tariffs would be implemented immediately and would undergo a 60-day public comment period. “No tariffs will go into effect until the respective process is complete,” he said.

The Trump administration has tried quelling fears of a trade war.

“I believe that the Chinese will back down and will play ball,” chief economic adviser Larry Kudlow told Fox News Wednesday, according to Bloomberg.

Trump has taken a consistent hard line, saying that it is time for China to stop “taking advantage” of America.

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